All Forum Posts by: Ryan Stumbo

Haha I can’t tell if you do appreciate it or sarcasm since text is hard to read, and some have said I’m “defensive” or have an “attitude” , but either way I appreciate every response. My entire meaning of the post was because every deal I analyzed for multi family properties seemed like my cash flow and return was coming back at negative percents based simply off the rental income and cash investment. So at this point I questioned am I missing something as a new investor, or why did so many realtors seem to be critiquing me and not critiquing the listing price at all or even looking at the numbers. The response I got from that is basically a lot of Arizona real estate sales are depending on appreciation and rent prices going even higher. Again, as you said, this seems like speculation to me. This market could grow 500% or it could absolutely crash. None of us really know. So with that being said, me personally, I’m not willing to buy a property based off “comps” or “appreciation” .. as a new investor, that is throwing a lot of risk into my equation when being new is already a lot of risk in itself. I appreciate your time in responding and hope no realtors were offended or think I’m a “low baller” .. as all my offers I’ve made, which is only 2 so far, were based off cash on cash return mathematics. It was good talking to you and thank you again!

@Zach Lemaster I wish I was experienced enough to manage flips right now but don’t know that I can devote the time to it still working my 9-5 job honestly. But I do still think it’s possible to buy fixer upper single family homes and rent to traveling employees by the bedroom. I do this back in my home state and triple the profits, and down here there’s even more traveling employees than there so it could work. Thanks for the advice!

@Rafael Norat just added you man. Thanks a ton for the insight. I’ll shoot you a message!

@Sameer A. that’s awesome man. I’m just going to have to stay patient and keep looking. Only been looking about a month so it’s highly likely I just am not being patient enough haha.. I have the capital to invest so maybe a fixer upper is more my style. A decent to good area where I can add equity. It’s probably going to be a lot harder to add equity in places like Arcadia compared to places like Mesa. What are your favorite areas to invest in specifically?

LOL yet you chose to respond. I got plenty of help at this point. The services are no longer needed. Thank you for your concern.  

@Casey Powers you’re the only one I’ve dismissed because in my eyes you have no more credentials than anyone else on this thread. yet you speak as if you know all and choose to disguise rudeness as bluntly speaking. Notice how every other person I thanked them for their input. Maybe 2-3 people out of the 5 million responses I said seemed. The others have all messaged me with more ACTUAL advice. Also, is a realtor blowing you off also if they still contact you and ask you if you’re interested in a deal? Idk if you’re dating a realtor or just trying to kiss some …. But it looks desperate. Not a good look. Be blunt. Be honest. But don’t be biased and disrespectful. Please say your last words and leave me be.

@Casey Powers lol then stop replying. Why are you still talking to me?

@Casey Powers you legit have no clue what you’re talking about. You’re trying to “win” a debate instead of just talking like a human. Not one realtor blew me off.

Realtor 1) told me that I need to lower my expectations if I expect 5% CoCr in any deal in Phoenix and that those deals were 10 years ago and I’m too late. He also stated I don’t understand the market here quite yet and the institutional money is going to beat me out of any deal. Respectable response but still had me wondering what he meant by not understanding the market and why asking for 5% seemed unreasonable to him. Again, asking for info, not claiming I had all the answers or was a real estate guru.

Realtor 2) told me she would give my offer verbally but was not understanding the market. I told her don’t worry about it, that if she was that convinced the offer wouldn’t even be listened to, then I don’t want to waste her time.

Now, you know what they say about assuming right? Maybe had you taken the time to ask more questions this would’ve been more productive for us both. No realtor blew me off. None of us had rude interactions. I told the 2 realtors I’ve spoken with that I wanted 5% return so I would adjust my offer according to that and both basically didn’t want to send the offer. Which I respect, clearly it was below the list price, but in other markets I’ve been in, most people who have had houses on the market over 100 days are just happy to hear an offer. The low offer can still open a door to get a better deal. You never know the answer unless you ask. It wasn’t like I just came up with a number and decided to lowball them without any math. The math supported my offer. But again, as I’ve now admitted, I didn’t realize so many people in the real estate world were willing to buy strictly for appreciation. I was naive in thinking everyone was like me and in real estate for the cash flow and having that passive income give them their freedom to have their life back and go to their children’s basketball game.

Like I said, I still have a lot to learn. I usually am a pretty friendly guy, but when people just start assuming things that they’re wrong about, it’s kind of annoying.

@Colleen F. But I do agree with 1 thing you said. I’m sure lots of sellers are content hanging onto a property to get what they want. Because it’s likely already cash flowing for them, so they will just hold onto the property and try to sell at a maximum. Good point.

@Colleen F. To each their own. If someone is saying I’m a time waster or “don’t know what you’re talking about” .. that’s just rude. If you have value to add to the convo I’m all ears, but don’t need to sit and listen to negativity or rudeness. People get too brave over the internet. If you want to say “you misevaluated the property because you’re attempting to get good CoCr rates but these sellers are going off Comps not CoCr” then fine. That’s a respectable way to put it. Don’t say “the realtor probably didn’t think you had a clue what you’re talking about because you sound like a time waster trying to offer lowball offers and showing them your silly little spreadsheet” .. in the real world, not the internet world, that would be construed as rude by most.. if people want to communicate rudely that’s their prerogative, but it’s just cowardly to act a certain way over the internet you wouldn’t act in real life. And if you do act that way in real life also, it’s clear that person’s parents never taught them basic respect.